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Common Mistakes Small Businesses Make and How to Avoid Them

Posted by nick_niesen on October 28th, 2010

Unfortunately very few start up businesses make it beyond their 3rd year. Failure is usually down to a number of clearly identifiable mistakes, which if small business owners are aware of [url=http://www.wholesalejerseysnflfreeshipping.com/]Wholesale Football Jerseys[/url] , can increase their chances of survival.

Here are the top 10 common mistakes which small businesses tend to make.

Lack of Market Research

When a budding entrepreneur comes up with an idea for a new business he assumes that because he would buy such a product or service then everyone else will. This may be the case for day-to-day necessities but for other items this is usually not so.

It聮s important that when you start up you carefully research the market to check that:

聲There is demand at a level which would lead to a sustainable business

聲People are prepared to pay the price required for you to make a decent profit

Undertaking market research may appear time consuming but the effort will pay off.

Poor Record Keeping

Some business people are not born administrators; they feel more comfortable getting out there and 聭doing the business聮. Paperwork is too easy to ignore but can never be put off indefinitely.

Sales, purchases and other expenditure must be carefully documented, so you know whether you are making a profit or not. Invoices must be issued on time and chased up promptly if there is a delay in payment. It聮s all very well having the sales but poor record keeping can hold you back.

Having your paperwork in order will also save you time when it comes to your accountant doing your year-end books!

Insufficient Capital

When starting off it聮s easy to decide what capital is required for fixtures and fittings [url=http://www.wholesalejerseysnflfreeshipping.com/]Wholesale Authentic NFL Jerseys[/url] , machinery and stock. What many new business owners forget about is the cash needed to fund day-to-day requirements, i.e. cash to pay expenses before your customers pay you. This is known as your working capital requirement.

Small businesses can fail because they have insufficient cash to start off to meet these immediate expenses. If you wish to survive make sure you set aside enough cash to meet all your needs for the first few months.

Ineffective Marketing Or None At All

You cannot afford to treat the cost of marketing as an unnecessary expense. A business with no marketing is like waving in the dark 聳 you know you are doing it but no one else does!

There are many ways to promote your business on a small budget; it聮s just a case of being inventive and creative. What ever you do, don聮t assume that people will quickly know you are in business 聳 they won聮t [url=http://www.wholesalejerseysnflfreeshipping.com/]Wholesale NFL Jerseys Cheap[/url] , unless you tell them.

Ingoring Changes In The Market Place

As a small business owner it聮s very easy to get immersed in your business and not see what is happening around you in the market place. Always keep your eyes and ears open to what the competition is doing and what your customers want. Don聮t get left behind.

Owner聮s Attitude

Attitude is everything in business. Don聮t forget that the real boss in your business is the customer. Running a business may make you feel important but don聮t let this develop into an 聭I am better than you聮 attitude. Do this and you will quickly chase your customers away.

Spending On The Wrong Things

Being in business can be exciting, especially as the cash starts to roll in! However, don聮t be tempted to spend it on a new car [url=http://www.wholesalejerseysnflfreeshipping.com/]Wholesale NFL Jerseys Online[/url] , a house or just a good time. If you are to own a successful business then you have to keep some cash back to fund future growth. A business cannot grow without cash, so commit to spending business money on the business.

Dependent On A Small Number Of Customers

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